MANAGER OF PROSTITUTION RING PLEADS GUILTY TO
FEDERAL PROSTITUTION AND MONEY LAUNDERING OFFENSES

MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, announced that CECIL SUWAL, a/k/a "Katie," a/k/a "Kate," pleaded guilty today to conspiracy charges stemming from her participation in the international prostitution and money-laundering ring Emperors Club VIP (the "Emperors Club"). SUWAL entered the guilty plea before United States District Judge BARBARA S. JONES in Manhattan federal court. According to the felony Information and other documents filed in this case, as well as statements made during SUWAL’s guilty plea proceeding:

SUWAL participated, from December 2004 until March 2008, in a conspiracy to promote, manage, and carry on an illegal prostitution business and to transport and to induce women to travel in interstate commerce with the intent that the women engage in unlawful prostitution. Specifically, among other things, SUWAL controlled a website used to promote the business, received applications from potential prostitutes, and communicated with co-conspirators who arranged prostitution appointments for customers.

SUWAL also conspired to commit money laundering by conducting financial transactions to carry on the illegal prostitution activity and conceal its proceeds. Specifically, among other things, SUWAL opened bank accounts in the names of "QAT Consulting, Inc.," and "QAT International, Inc.," which were used to receive payments from customers. SUWAL also wrote checks from those accounts to prostitutes employed by the Emperors Club, to cash, and to an account controlled by a co-conspirator.

SUWAL, 23, of the Bronx, New York, faces a maximum sentence of five years in prison on the prostitution conspiracy count and twenty years in prison on the money laundering conspiracy count. Sentencing is scheduled for September 12, 2008, at 3:30 p.m. before Judge JONES.

Mr. GARCIA praised the investigative work of the Federal Bureau of Investigation and the Criminal Investigative Division of the Internal Revenue Service. Assistant United States Attorneys BOYD M. JOHNSON III, DANIEL L. STEIN and RITA GLAVIN are in charge of the prosecution.

08-132